Allied Energy Corp. (OTC PINK: AGYP) closed last night in after-hours trading at $0.29. It is an oil and gas company penny stock stuck in a world increasingly hostile to fossil fuel. Yet, AGYP offers a greener option to oil investors, a firm that specializes in reworking and re-completing existing oil and gas wells that have proven reserves. These wells have been abandoned while they were still commercially productive. So, AGYP acquires these sites for little or no cash outlay to the landowners. What could be greener than that?
Unfortunately, Wall Street doesn’t see it this way. It sees Exxon/Mobil, BP, Dutch Shell, and other oil and gas firms as a fossil fuel industry lost in a world of EV cars, EV tractors, solar and wind renewable energy, and government tailwinds seeking dollars globally to finance a non-carbon clean world. So pink sheet AGYP is a smaller oil and gas company making a cleaner future in a world that still demands carbon.
Yet, AGYP offers investors the possibility of locating already-drilled oil and gas within proven reserves. It is offering American energy from wells on American soil. But is really viable?
The stars are aligning. Oil is looking for more weekly advances as stockpiles shrink and the market tightens. Brent crude may have a future at $100 a barrel and more output could happen from producers Saudi Arabia and OPEC. More daily output could happen by August, according to Bloomberg. Like a dog chasing his tail, global foreign producers are now chasing from behind to catch up with post-COVID energy demand.
According to its most recent fiscal filing, Quarterly Report (March 31, 2021) unaudited figures show liabilities of $2,691,647 and an operating and net loss of ($306,548). The accumulated deficit was $4,153,688 at March 31, 2021. More public or private offerings may be in the future because its liabilities exceed its assets.
In a non-independent energy America, AGYP might be a cheap investment that pays rewards for loyal investors. It typically enters agreements for 100% working interest and 80% net revenue interest ownership stakes in wells with the leasehold owners. Here are its most recent assets of abandoned/marginal wells located within in Texas:
- Annie Gilmer Project: AGYP is using new technologies to make mature wells new again. Fracking, cased hole electric logging and other strategies are being employed in aged or abandoned proven sites. Of the five wells on the lease, two are saltwater injection wells. AGYP plans to re-convert one of the wells into an active oil and gas producer. In its lifetime, the lease has produced more than five hundred thousand barrels of high gravity oil and more than five hundred million cubic feet of natural gas.
- Green Lease Project: Has world class hydrocarbon sourcing from shale and reservoirs, which can be accessed via vertical and horizontal drilling and modern completion techniques.
And there are more wells in Texas:
- The Byers Heirs #2 Deu Press Field abandoned in1977. It is a proven reserve of ‘heavy’ crude oil. AGYP plans to “blend” this type of oil with condensate to raise the gravity of the oil. To reach that goal, AGYP says it will need to drill four or five short lateral legs (horizontal) to increase production of non-discounted oil.
- Byers #1 and Cameron #1 Deu Pree Field inWood County: these are additional abandoned wells. One was shut when older technology could not repair a leak, the other was abandoned when oil fell below $10 a barrel.
- AGYP also has numerous leases and identified other potential and abandoned wells within Texas which perhaps can also be re-worked.
- Management team: in addition to its primary, George Monteith, President, CEO and CFO, the company has hired Mark McBryde as Production Engineer, a senior expert and experienced oil production engineer with a big oil background.
 Green Oil: Focused On Re-Completing Old Wells){kind=link}